Bad because it limits your conventional financing choices.
Good because there are other alternatives, such as owner financing. That's far more common with mobile and manufactured homes than with stick-built homes. Reasons: The dollar amounts often are smaller, and a greater number of purchasers of mobile and manufactured homes seem to have had some credit issues.
You may also be able to buy with investor assistance. There's a technique called a "Lonnie Deal" (named after a Virginia Beach investor named Lonnie Scruggs). The strategy, in brief, is that the investor comes in, buys the home for cash, marks the price up a bit, then sells it to you on terms.
Example: An investor (perhaps with your input and guidance) finds a home for sale. The owner is asking $7,000. The investor buys it for $4,500, all cash. He puts $750 worth of repairs into it. He sells it to you for $9,000. He collects $1,000 down from you, and you finance the rest ($8,000) for 5 years at 12.75% interest. Your monthly payments would be about $181, plus any ground rent or land lease. You'd have an affordable home. The seller would have sold his home. And the investor would make a nice profit. (I did a Lonnie Deal just a few months ago. The seller was happy and the buyer--who'd had a home foreclosed on about a year ago--was delighted.)
And mobile and manufactured homes qualify for the first-time home buyer tax credit so--if you act quickly--you could qualify for that, too.
Hope that helps.